Cypress West, TPG Angelo Close MOB Credit Facility

August 9, 2024

Capital One Bank provided financing for a joint venture targeting up to $300 million in acquisitions.

The joint venture’s first acquisition involved an 86,000-square-foot medical office building at 9377 E. Bell Road in Scottsdale, Ariz. *Image courtesy of CBRE Investment Banking.*

Four months after announcing a joint venture aimed at acquiring up to $300 million in medical office assets across the Sun Belt, Cypress West Partners and TPG Angelo Gordon have closed a MOB credit facility.

Capital One Bank provided the loan which consists of financing for an existing portfolio and additional capacity for future acquisitions. Newmark Healthcare Capital Markets advised Cypress West and arranged the credit facility on behalf of the joint venture.

The deal marks a significant milestone in the strategic joint venture announced in March by Cypress West and TPG Angelo Gordon. Focusing on acquisition of medical office assets in high-growth Sun Belt markets, the partnership targets core-plus and value-add returns and will have the ability to acquire up to $300 million in the vehicle.

The portfolio included in the financing consists of six Class A medical outpatient facilities totaling 269,000 square feet in West Coast markets such as Phoenix, Orange County and San Diego. The properties feature both assets previously owned by Cypress West as well as assets acquired by the joint venture.

The partnership’s first acquisition was completed in March and involved an 86,000-square-foot medical office building at 9377 E. Bell Road in Scottsdale, Ariz. Healthpeak Properties was the seller, according to CommercialEdge data.

The portfolio also includes:

RMS Health Center, 25,106 square feet, 22032 El Paseo, Rancho Santa Margarita, Calif.
101 Medical Gateway, 50,824 square feet, 9520 W. Palm Lane, Phoenix
Desert Mountain, 42,429 square feet, 9220 E. Mountain View Road, Scottsdale, Ariz.
Tatum Highlands, 33,619 square feet, 26224 N. Tatum Blvd., Phoenix

More recently, the joint venture acquired Chula Vista Medical Arts II, a nearly 40,000-square-foot medical office building in Chula Vista, Calif., from Turner Impact Capital. The four-story facility, built in 1985 and most recently renovated in 2015, is leased to 12 tenants and anchored by Scripps Health.

More TPG Angelo deals

In March, TPG Angelo Gordon and another joint venture partner, Sendero Capital, grew their Rhode Island portfolio with the acquisition of a 30,000-square-foot, multi-specialty healthcare facility in Warwick. The partners purchased the three-story property from NeuroHealth in a sale-leaseback deal.

It was the fifth acquisition through their programmatic joint venture that launched in July 2023. The investment vehicle is focused on out-patient healthcare real estate in the Northeast and has the capacity to make up to $300 million in investments.